Tuesday, 23 September 2014
Last updated 10 hours ago
Jan 22 2007 | 6:06pm ET
Colleges and universities continued to plow ever-larger portions of their endowments into alternatives last year. But, like hedge funds, their efforts left them lagging the broader markets.
According to a survey from the National Association of College and University Business Officers and TIAA-CREF, the average endowment allocated 9.6% to hedge funds and 1.9% to private equity, a 336% and 533% increase over the past decade, but their hedge fund investments in 2006 did only marginally better than their U.S. equity portfolios, returning 10.4% to the stocks’ 10.3%. In 2005, U.S. equity investments actually edged hedge funds, 8.8% to 8.5%.
Endowments did better in other alternative assets, especially natural resources (average allocation: 1.5%) at 28.2%, private equity at 17.9%, and real estate (average allocation: 3.5%), with the public portfolio returning 19% and the private portfolio returning 15.8%.
All told, the average higher education endowment returned 10.7%, substantially trailing the Standard & Poor’s 500 Index.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.